Gracio Co. had the following transactions in the last two months of its year ended December 31. Prepare entries for these transactions under the method that records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.Nov. 1Paid $11,400 for 12 months of insurance coverage through October 31 of next year.5Received $8,000 cash for future services to be provided to a customer.7Paid $10,000 for future advertising.Dec. 31A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to the insurance account.31Services of $2,500 are not yet provided to the customer who paid on November 5.31Of the advertising paid for on November 7, $1,500 is not yet used.
What will be an ideal response?
| Nov. 1 | Insurance Expense | 11,400 | ? |
| ? | Cash | ? | 11,400 |
| ? | ? | ? | ? |
| Nov. 5 | Cash | 8,000 | ? |
| ? | Fees Earned | ? | 8,000 |
| ? | ? | ? | ? |
| Nov. 7 | Advertising Expense | 10,000 | ? |
| ? | Cash | ? | 10,000 |
| ? | ? | ? | ? |
| Dec. 31 | Prepaid Insurance | 9,500 | ? |
| ? | Insurance Expense | ? | 9,500 |
| ? | ($11,400 * 10/12=$9,500) | ? | ? |
| ? | ? | ? | ? |
| Dec. 31 | Fees Earned | 2,500 | ? |
| ? | Unearned Fees | ? | 2,500 |
| ? | ? | ? | ? |
| Dec. 31 | Prepaid Advertising | 1,500 | ? |
| ? | Advertising Expense | ? | 1,500 |
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A key source of information for computing employer payroll taxes is the
a. end-of-period balance sheet; b. income statement; c. payroll register; d. employees' check stubs; e. statement of owner's equity.
Jim was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting a thorough investigation, he went and gave all the details to a local newspaper agency. The next day Jim read his own story, with his own name, in the newspaper. Which of the following is correct?
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The Retained earnings account has a credit balance of $47,000 before closing entries are made. Total revenues for the period are $65,200, total expenses are $44,800, and dividends are $13,000. What is the correct closing entry for the revenue accounts?
A. Debit Revenue accounts $47,000; credit Retained earnings $47,000. B. Debit Income Summary $65,200; credit Revenue accounts $65,200. C. Debit Income Summary $47,000; credit Retained earnings $47,000. D. Debit Revenue accounts $65,200; credit Income Summary $65,200. E. Debit Revenue accounts $65,200; credit Retained earnings $47,000.
The Recreation and Parks Agency of the state government has six employees and is interviewing for a person to teach gymnastics and arts and crafts to 3-5 year olds. Ed, age 68, applies but is told he is too old. If he sues under the Age Discrimination in Employment Act, the agency's best defense would be that:
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